Question 71

Mechanic's lien should be filed by the company to obtain the balance.

A mechanic's lien is the appropriate legal claim for a contractor to secure payment for work completed on a property. By filing this type of lien, the company can enforce its right to payment for the addition built on the owner's house.

A) judgment lien

A judgment lien is typically a claim against a debtor's property following a court judgment, which does not apply in this case. Since the issue arises from a contract for construction services, a mechanic's lien is more suitable for securing payment for the work performed.

B) general lien

A general lien encompasses a broader range of claims against a debtor's property and is not specific to property improvements. It would not be appropriate in this situation where the contractor seeks compensation specifically for the construction work completed.

C) mechanic's lien

A mechanic's lien is specifically designed for contractors and suppliers to secure payment for labor and materials provided in the construction or improvement of real property. In this scenario, where the owner has refused to pay for the addition built, the filing of a mechanic's lien is the correct action to take.

D) condemnation lien

A condemnation lien relates to property taken for public use, often associated with eminent domain. This type of lien does not apply in situations involving private contracts for construction work and would be irrelevant in this context.

Conclusion

The mechanic's lien is definitively the right choice because it directly addresses the contractor's need to secure payment for services rendered on the property. Other options, such as judgment, general, and condemnation liens, do not fit the specifics of a construction contract dispute and therefore would not be effective in this scenario.